5 Reasons Why Your Gas Station Needs a Rewards Program
No one can deny the fact that gas prices today are high. In some areas, consumers are paying over $4 per gallon of gas. As a natural response, many consumers are doing whatever they can to decrease the amount of money they spend on gas. This means that they are driving less and buying less gas. Some have opted to walk or ride public transportation, while others simply stay home. Long gone are the days of cruising down the highway in your car just for the fun of it.
While consumers are saving money and helping the environment by saving less gas, they are hurting gas stations. Not only are consumers not buying fuel, many have also stopped buying other products sold at gas station convenience stores.
Lowering gas prices is next to impossible for a number of reasons, so what’s a gas station to do? One of the surest ways to get more consumers to purchase gas from you is to offer a rewards program. Here are 5 reasons why your gas station needs a reward program.
1. Your Competitor Has One
The gas station industry is extremely competitive these days. Consumers have grown accustomed to hunting for the best deals on gas. Some consumers are even willing to drive to a neighboring town to buy gas if they can get a better deal. While they may only be saving a few cents per gallon, it adds up over time, especially for consumers who fill up often.
Many gas stations have begun offering rewards programs to their customers. In general, these programs have been well received. Savvy consumers recognize the benefits of gas station rewards programs. They realize that patronizing a gas station with a rewards program will save them a decent chunk of change every month. If you don’t already have a rewards program at your gas station, you are most likely losing business to your competitor down the road who already has one in place.
2. Attract New Customers
As previously mentioned, many consumers go out of their way to find gas stations with the lowest prices. If your gas station offers some type of rewards program, consumers who don’t normally frequent your establishment will sign up with the aim of saving money. These same customers will then return to your establishment frequently and spend money in order to earn their rewards.
3. Keep Your Existing Customers
Your customers may be loyal to your business now, but if a gas station on the other side of town lowers their prices, don’t be surprised if they leave you behind. Consumers are always keeping an eye out for the best deals, so you have to secure their commitment to your business by offering an attractive rewards program. If you have a rewards program with tiered discounts, your customers will feel more compelled to stay loyal to your business, since they can save an increasing amount of money as they continue to buy gas from you.
4. More Sales
If you run a gas station, chances are you also have a convenience store. Implementing a loyalty program at your gas station can potentially increase sales in your store, as well.
You can encourage rewards program members to shop in your convenience store by offering them discounts on gas that are based on their purchases in your store. For instance, you can reward customers with one point for every dollar that they spend in your store. After your customers have earned a certain number of points, they are eligible to receive a discount on gas. In their attempt to earn gas rewards, they may start purchasing more necessities at your store instead of at another store. This results in more sales for you.
5. Gas Is In Demand
No matter how strongly environmental groups try to dissuade people from driving and relying on fossil fuels, one simple fact remains: people are going to continue driving. It’s quicker and simpler than alternatives, like public transportation, cycling, and walking. Gas will always be in demand, or at least until the majority of motorists switch to electric cars. For now, though, consumers will continue to fill up their vehicles’ tanks with gas. And you can encourage consumers to buy gas from you instead of one of your competitors by launching an irresistible reward program.